The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Page 10 of the latest presentation is worth a look - says the pre test estimate of formation damage was 8 inches and formation penetration was predicted to average 11.32 inches. There's also some very small print on the right hand side saying the rock type is sandstone which supports Keith's info that the geology is friable.
Having said that, I'm not sure if they'll be retesting this zone with the sandjet - maybe someone else can clarify?
JohnHenry-Around 16m20s into presentation PG states 'we collected information we need on the depth of the formation damage.So no big deal and nothing to get in a panic about in terms of what we're trying to achieve here".The fact that they're looking to re-test with Sandjet suggests that no re-drill is required.
Thanks Keith - Just watched.
Good post keith oz.
I would agree with KO listern and read the presentation if you do not believe do not invest if you do then hol.d IMO
@MarkA - May I suggest you watch the recent presentation? The answers to all your questions are there.
I also want to know why sand jetting is taking so long?
ECS the French company was chosen way back in Aug 23. In Nov we were told there was a delay in the sand jetting equipment. It wasn't until Jan 24 they went ahead with explosives saying sand jetting in Feb/Mar.
Explosives damaged the formation, and now we're told sand jetting will proceed with design parameters changed, but no date as to when, or even do we have the equipment or bulk materials yet?
Seems to be one delay after another with this equipment.
@Howarda. The failure of SandJet at the Beacon Energy SCHB-2 well has been mentioned here on several occasions. What is not mentioned is that this was an oil well, with different reservoir geology and different drilling fluid. The Guercif reservoirs are for the most part extremely friable, loosely compacted sands. While this makes them liable to intrusion by drilling fluids, it also means that the crumbly texture should easily be amenable to SandJet technology. The gas behind the occluded zone is at high pressure, and should flow more readily than oil, which is of course much more viscous.
It is these reservoir characteristics that have contributed to the delay in testing. Conventional explosive perforation was always going to be problematic, due both to potential lack of adequate penetration depth, and to the propensity for explosives to compact and plasticise friable reservoir material. Plan B is not to use deeper explosive perforation, this would most likely make matters worse.
I expect that they will not initially use SandJet for the very limited horizons where they have used explosive perforation, but will start with the large range of virgin horizons. I would be very surprised if this is unsuccessful, but if so, the next step would be to try chemical stimulation to dissolve through the intruded material. Finally, as you have suggested, a sidetrack would be used. This is not at all unusual practice, and is neither technically demanding nor expensive - involving re-entry of the existing well, then diverting the drill direction before the problematic horizon is reached.
If PRD reached that stage, I would expect that should a (small) fundraise be required, it would be done after MOU-NE has been drilled, and thus hopefully at a much higher share price. MOU-NE carbonate reservoirs are much less likely to exhibit the same problems. My preferred alternative to find the cash would be to divert it from the Cory-Moruga programme, where PRD management have already indicated that they have flexibility over timing and range of activities.
The latest presentation had larger perforating guns as the next choice if sand jetting does not work. They provided a similar well in northern Morocco with comparable mud weight used and these were successful in that case. After that it will be sidetrack probably.
These are the questions that should have been asked at the presentation ?
Thats the 6 million dollar question they don't know the extent of the formation damage.
If anything greater than 60" then its a redrill
Beacon Energy (BCE) has had to sidetrack the last 100m of its well after Sandjet failed to increase oil flow to the desired level. Conclusion was formation damage of approx 3m.
I hold shares and hope the company succeeds. I am a accountant so not in the industry. I wondered if someone knew any process available if sandjet doesn't work. I hope it does but is there a plan b? I heard re possibility of side tracking but is this a option albeit more money!! Thanks for replying. Howard